Billionaire entrepreneur Mark Cuban says the latest crypto market cataclysm triggered by the collapse of FTX has extra to do with banking failures than crypto itself.
The Shark Tank investor tells his 8.8 million Twitter followers that FTX’s insolvency is not any totally different from previous crises within the conventional monetary world.
“These blowups haven’t been crypto blowups, they’ve been banking blow-ups. Lending to the incorrect entity, misvaluations of collateral, boastful arbs, adopted by depositor runs. See Lengthy Time period Capital, Financial savings and Mortgage and Sub-Prime blowups. All totally different variations of the identical story.”
Cuban says that opposite to standard perception, crypto will not be an unregulated business. In keeping with the investor, officers might do extra to act on current laws somewhat than developing with extra.
“Everyone seems to be saying that crypto is unregulated. Not true. The SEC says that they regulate crypto. Ask Kim Kardashian and the tokens they’ve sued or settled with. The query is, given the visibility of the central[ized] exchanges, why hasn’t the SEC already knocked on their doorways?”
Cuban additionally reveals his thesis for why he determined to spend money on the crypto area within the face of all the present uncertainty.
“A primary query. Why have I invested in crypto? As a result of I consider good contracts could have a major influence in creating helpful functions. I’ve mentioned from day one, the worth of a token is derived from the functions that run on its platform and the utility they create.
What has not been created is an utility that’s ubiquitous. One that’s clearly wanted by everybody and they’re prepared to undergo the training curve to make use of. Possibly it by no means comes. I hope and suppose it would.
The very best analogy I can use is the early days of streaming. The sh*t individuals needed to do to hearken to a 16k stream of music was insane. An web subscription on your dial up modem. Obtain the supplier shopper. Obtain a TCP/IP shopper. Obtain the streaming shopper.
Click on on a batch file on an internet site. Be certain all of it labored collectively. All whereas being laughed at for simply not turning in your radio or television. However for in workplace or out of market, it was value it. It began as area of interest in 1995. Now understand that good contracts are about 5 years previous.”
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